AAPL: Apple Stock Zaps $200bn After China Bans iPhone Use by Government Staff

The company sells around 50 million iPhones in China annually. A sweeping ban is what investors fear and that spells trouble for Apple.

• Apple stock AAPL fell 2.92% on Thursday after The Wall Street Journal reported a day earlier that Chinese authorities have curbed the use of the iPhone. Apple’s flagship product will no longer be legal to use by selected central government officials.
• The looming crackdown threatens to derail Apple’s sales as China sells roughly 50 million iPhones a year, accounting for about a fifth of Apple’s total revenue. Uncertainties over the fate of the product prompted investors to retrace, leading to a 6% drop in Apple shares in two days. More than $200bn of market cap was washed out.
• Adding to pressure, Apple is less than a week away from its key event - on Sept. 12, the company is expected to officially announce the launch of its newest smartphone - the iPhone 15. No comments have been made so far from Apple, making the press event even more anticipated.